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By Chukwumah Kelechukwu
The Nigerian Stock Exchange All Share Index fell 0.39 percent to as low as 28,313.11 basis points at the close of session on Wednesday, a level not seen since May 2017.
Market capitalisation which measures value of equities also depreciated by over N42billion or 0.39 percent to N10.636trillion. It was the third consecutive day of losses this week.
Equity dealers attributed the slide to renewed concerns on economic growth after the Central Bank governor, Godwin Emefiele, was renominated for second tenure.
Expecting the CBN to sustain tight monetary policy, dealers say that limited economic growth under Emefiele’s first tenure would likely continue.
“We do not expect any new policy from Emefiele. His tight monetary policy has been antithetical to equities market growth. As long as interest rate remains at double digit, investments will continue to flow towards fixed income market. This is the problem with our equities market. And Emefiele has not hidden his preference for sustaining the beaten track,” said a broker who pleaded not to be mentioned.
The Nigerian stock market has posted has declined by over 9 percent since the beginning of 2019 with investors losing more than a trillion naira cumulatively.
President Muhammadu Buhari has since sent a letter to the national assembly, seeking for confirmation of Emefiele for a second term in office
BADEJO ADEMUYIWA has 23 years experience as a Finance Writer, specialising in Insurance and Investigative Reporting.
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